EDITOR’S COMMENT: THE GOVERNMENT’S OWN ANALYSIS HAS SHOWN THAT ENCOURAGING PEOPLE TO SWITCH TO ELECTRIC VEHICLES IS GOING TO COST £40 BILLION! SO THE GOVERNMENT IS PLANNING ON INTRODUCING “ROAD CHARGES” TO PLUG THE BLACK HOLE. THIS IS OUTRAGEOUS! PLEASE SIGN OUR PETITION AND SAY NO TO ROAD CHARGES!
The Treasury has said it must consider how to offset a fiscal black hole from lost tax income when drivers transition to electric vehicles in its latest report.
It said it will be forced to increase other taxes or cut funding for services to compensate for the loss in taxes on polluting cars as well as fuel duty.
The report comes admit reports that Rishi Sunak is reportedly in favour of a ‘road pricing’ scheme, which could see motorists charged for every mile they drive.
In its Net Zero Review Interim Report, it said: ‘Revenues from taxes on the consumption of fossil fuels and from emissions-intensive industries will decline during the transition, for example, as petrol cars are replaced by electric vehicles.
‘Over time the Government will need to consider how to offset these lost tax revenues – whether through adjustments to other taxes or reductions in government spending – so that the UK can reach net zero while maintaining the long-term health of the public finances.’
Boris Johnson has already outlined his plans to outlaw the sale of new petrol and diesel cars from 2030, triggering a more dramatic switch to battery-powered cars.
While this shift will undoubtedly help the Government achieve its green targets, officials have long been aware that the switch to plug-in cars will result in future losses of £40billion in revenue from drivers.
Vehicle and Excise Duty paid by car owners is currently based on the the CO2 emissions output of their motors, which will become a thing of the past when EVs eventually become mainstream.
The Treasury also takes 57.95p from every litre of petrol and diesel pumped into cars, which will also go missing from coffers.
In the report, the Treasury highlighted the potential huge loss in revenues and admitted it will need to consider how to recoup these funds via other means of taxation or reviews of spending.